INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Provision for income taxes

The provision for income taxes consisted of:

	Year Ended December 31,
	2013			2012		2011
	(In thousands)
Other than U.S.:
Current	$	54,410		$	125,402	$	85,474
Deferred		(5,359	)		3,802		1,650
Total provision for income taxes	$	49,051		$	129,204	$	87,124

Geographic Source of Income Before Provision for Income Taxes

The geographic sources of income before income taxes are as follows:

	Year Ended December 31,
	2013			2012			2011
	(In thousands)
U.S.	$	(147,098	)	$	(82,035	)	$	(187,426	)
Other than U.S.		(301,806	)		425,165			438,717
Income before provision for income taxes	$	(448,904	)	$	343,130		$	251,291

Reconciliation of Panama Statutory Federal Tax Rate to Consolidated Effective Tax Rate

The following is a reconciliation of the Panama statutory federal tax rate to the consolidated effective tax rate:

	Year Ended December 31,
	2013			2012			2011
Panama federal statutory rate		25.0	%		25.0	%		25.0	%
Non-Panama operations		(16.6	)		(5.2	)		(24.7	)
Valuation allowance for deferred tax assets		(18.8	)		14.2			30.7
Audit settlements and reserves		(0.8	)		2.9			0.7
Other		0.3			0.8			3.0
Effective tax rate attributable to continuing operations		(10.9	%)		37.7	%		34.7	%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities were as follows:

	December 31,
	2013			2012
	(In thousands)
Deferred tax assets:
Pension liability	$	16,658		$	5,779
Accrued liabilities for incentive compensation		15,032			13,630
Net operating loss carryforward		259,600			172,073
State net operating loss carryforward		24,679			23,231
Long-term contracts		13,504			10,791
Other		4,936			8,606
Total deferred tax assets		334,409			234,110
Valuation allowance for deferred tax assets		(292,388	)		(208,061	)
Deferred tax assets	$	42,021		$	26,049
Deferred tax liabilities:
Property, plant and equipment	$	19,115		$	14,072
Prepaid drydock		13,025			6,633
Investments in joint ventures and affiliated companies		8,354			8,988
Unrealized exchange gains and other		3,236			3,424
Total deferred tax liabilities	$	43,730		$	33,117
Net deferred tax liability	$	(1,709	)	$	(7,068	)
	December 31,
	2013			2012
	(In thousands)
Deferred tax assets and liabilities in the accompanying consolidated balance sheets include:
Current deferred tax assets	$	7,091		$	9,765
Noncurrent deferred tax assets	$	16,766		$	4,180
Total	$	23,857		$	13,945
Current deferred tax liabilities	$	17,892		$	10,758
Noncurrent deferred tax liabilities		7,674			10,255
Total	$	25,566		$	21,013
Net deferred tax liability	$	(1,709	)	$	(7,068	)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits is as follows (in thousands):

	Year Ended December 31,
	2013			2012			2011
Balance at beginning of period	$	40,516		$	31,664		$	26,412
Increases based on tax positions taken in the current year		539			10,830			8,197
Increases based on tax positions taken in prior years		3,831			158			2,590
Decreases based on tax positions taken in prior years		(3,688	)		(1,465	)		(473	)
Decreases due to settlements with tax authorities		—			—			(2,697	)
Decreases due to lapse of applicable statute of limitation		(585	)		(671	)		(2,365	)
Balance at end of period	$	40,613		$	40,516		$	31,664